Dubai’s commercial real estate market soars

CRC, a Betterhomes Group company and Dubai’s largest commercial real estate agency, has released its Dubai Commercial Real Estate Market Report for Q1 2022, which provides a detailed overview of Dubai’s commercial real estate in course of the last trimester.

The first quarter of 2022 proved that the Dubai property market continues to soar. The remarkable recovery of the commercial real estate market after the pandemic resulted in one of the strongest quarters in recent years.

Reflecting on the first quarter, Ben Bargh, Director of CRC, said: “In 2021, the commercial property market experienced a rebound that exceeded expectations with an increase in transactions and demand in all areas. Growth continues through 2022, with confidence building among investors and end-users of the market. »

“The commercial real estate market is currently the strongest since 2016, with office, warehouse and retail properties in high demand for sale and rental.” Well go on.

New policies issued by the government at the start of 2022, such as changing the working week from Monday to Friday to align with the rest of the world, have made Dubai even more attractive for investors looking to develop or develop their business.

Overall, the commercial property market can be expected to continue on an upward trajectory, supporting the growth of the Dubai property market and the economy as a whole.

Main findings

The Dubai property market had a total sale value of nearly AED56 billion in the first quarter of 2022, according to DXB Interact, a record quarter compared to previous years. At CRC, our billed transactions increased by 62% in the first quarter of 2022 compared to the first quarter of 2021.

Office and retail sales remain at the forefront of growth, with office seeing a 31% increase and retail a 104% increase for units sold in the first quarter of 2021. The total value of Sales also continue to rise, with offices seeing a 71% increase and retail units a 49% increase from the first quarter of 2021.

Major communities such as Business Bay and Jumeirah Lake Towers continue to dominate office sales, followed by Emirates Living and Dubai Silicon Oasis.

For retail sales, International City, Jumeirah Lake Towers and Business Bay came out on top for the first quarter of 2022.

According to CRC data, the number of rental transactions is up 7% for the first quarter of 2022 compared to the first quarter of 2021, with the largest increase in the warehouse sector, which is 88%.

As prices rise and demand grows, tenants who previously shopped year-over-year for high-quality homes at the lowest price are opting instead for long-term leases at lower rental values .

Apparently confidence in the market rebounded in the first quarter of 2022, with the CRC recording a 17% increase in payments with 4 checks and 1 check down 7%.

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